Global Access lost $5 million through fraudulent activities-Dr. Amoah

The majority shareowner of defunct Global Access Savings and Loans, Dr. Kofi Amoah, has disclosed in an interview that his financial institution lost $5 million through fraudulent activities.

He made the disclosure on Metro TV’s Good Evening Ghana on Tuesday

Dr. Kofi Amoah, whose company Progeny Ventures owns Global Access Savings and Loans said the company at a point could not trace an amount of US$5 million from its remittance business.

“US$5 million got wiped out of the company. We sell dollars and we get cedi back. So we found out that when the dollars were sold the cedi equivalent never came,” he revealed.

“We found out a lot of things in the investigations and that means we would have to go and collect… The managing director at the time, the board fired him. We didn’t know all these things until he was fired. All we knew was things wasn’t going on well,” he said.

Dr. Amoah stated that the Bank of Ghana was aware of the incident which he said led to the downfall of Global Access.

Global Access Savings and Loans Company Limited was incorporated under the laws of Ghana in 1998 and commenced business in February 2000 as a Partner Agent of ADB in the Western Union Money Transfer Business.

The company grew and added other money transfer services to its remittance product line.

Following the changing need of customers, Management decided to convert the company into a Savings and Loans Company.

The company was granted a savings and loans company license on 15th June, 2009 by the Bank of Ghana and it commenced operations on December 6, 2010.

The Bank of Ghana (BoG) in a detailed statement explaining reasons why the company had its licence revoked said: “The institution has been insolvent since 2016 with serious liquidity challenges. The reported capital adequacy ratio and net worth are both negative. The Bank of Ghana has had several engagements with the Board and Senior Management on the need to inject additional capital but have not yielded any fruitful results. The institution rather opted to apply for liquidity support from the Bank of Ghana which was declined due to its insolvency position.”

The specific issues that led to the revocation of its license included the following:
a. The institution’s Net worth of negative GH¢58.19 million as at end May 2019 indicates that its paid up capital is impaired in violation of Section 28(1) Act 930.
b. The institution’s capital adequacy ratio of negative 195.06% as at end May 2019 is in violation of Section 29(2) of Act 930.
c. The institution has breached the statutory cash reserve ratio requirement since 2016.
d. The institution assumed the liability of a loan contracted by the majority shareholder amounting GH¢2.91 million. The loan amount was injected into the institution as equity capital. The liability was however concealed as a suspense account in the books of Global Access Savings and Loans Limited.
e. The institution continues to record accumulated losses due mainly to high rent expenses paid to the majority shareholder for the use of its premises.
f. The institution failed to keep accounting records in a manner that gives an accurate and reliable account of its transactions constitutes unsafe and unsound banking practice
g. The institution failed to implement Bank of Ghana’s on-site examinations findings conducted in October 2018.
h. There have been several complaints from customers about the inability of the Institution to honour depositors’ withdrawals.
i. The company neither published nor submitted its 2017 Audited Financial Statements to the Bank of Ghana contrary to Act 930.

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